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Working Against Bearish Outlook

EURO-DOLLAR TECHS
  • RES 4: 1.1872 High Sep 21
  • RES 3: 1.1822 Trendline resistance drawn off the Sep 1 high
  • RES 2: 1.1762 20-day EMA
  • RES 1: 1.1745 High Sep 29
  • PRICE: 1.1740 @ 19:54 BST Sep 29
  • SUP 1: 1.1612/1581 Low Sep 25 / Low Jul 24
  • SUP 2: 1.1486 38.2% retracement of the Mar - Sep rally
  • SUP 3: 1.1488 100-dma
  • SUP 4: 1.1422 High Jun 10

EURUSD traded well Tuesday and looks to close above the 50-day EMA at 1.1712 to work against the bearish outlook. For now, however, a bearish theme remains intact. Weakness last week resulted in a breach of that 50-day EMA and the Sep 21 sell-off also saw the pair trade through 1.1738, Sep 17 low confirming recent bearish signals. A trendline break drawn off the May 14 low and a head and shoulders reversal pattern confirm bearish sentiment. The focus is on 1.1581 next. To snap the bearish trend, markets eye the 20-day EMA at 1.1762.

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